August gold futures are presently in a fledgling uptrend from the mid-June spike low of $546.40 an ounce. Prices this week have worked to a fresh two-week high of $599.00, scored Tuesday. That price level is now some solid overhead technical resistance. A push and close above $599.00 and then above major psychological resistance at $600.00 would provide the bulls with some fresh upside near-term technical strength to suggest that prices can continue to trend higher in the coming days and weeks.
Above the $600.00 level lies chart resistance at $610.00 and then at $620.00, basis August futures. Bears would gain some fresh downside technical momentum with a close below solid near-term technical support at this week’s low of $579.10. Below that lies chart support at $575.00 and then at $570.00. A drop in August gold futures below strong technical support at the June low of $546.40 would produce serious chart damage to suggest that a near-term top is in place and that prices will continue to trend lower in the coming weeks.
click on the chart to enlarge
The bulls are also encouraged by the fact the Moving Average Convergence Divergence (MACD) indicator has just this week produced a bullish line crossover signal on the daily chart for August gold. The MACD line of the indicator has pushed above the “trigger” line to produce the bullish signal. A look at previous bullish and bearish MACD line crossovers on the daily chart does show the signals have done a good job of producing buy and sell signals.
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